Top Strike Announces 2024 First Quarter Financial Results ending July 31, 2023 and Corporate Update
- Vencanna Ventures reports positive financial results for Q3 2023, with revenues of $40,815. The company is involved in US cannabis-related activities, positioning it for potential growth in the expanding cannabis industry. The passage of the SAFE Banking Act and the potential reclassification of cannabis could provide further opportunities for the company. The amended agreement with Cannavative and the upcoming acquisition suggest expansion and diversification. The renewal of the NCIB demonstrates confidence in the company's future prospects.
- Vencanna Ventures records a net loss of $196,805 for Q3 2023, indicating financial challenges. The company's involvement in US cannabis-related activities poses regulatory and legal risks. The transaction with Cannavative and the upcoming acquisition may involve significant costs and uncertainties. The outcome of the SAFE Banking Act and the reclassification of cannabis remains uncertain, potentially impacting the company's plans. The NCIB may lead to share dilution and does not guarantee stock price improvement.
Financial Highlights
The following financial data is selected information for the Company for the eight most recently completed financial quarters:
Quarter ended (000's) | Jul | Apr | Jan
| Oct | Jul
| Apr
| Jan
| Oct |
Revenue | 41 | (366) | 178 | 373 | 181 | 151 | 294 | 510 |
Income (Loss) for the period | (196) | (629) | (98) | (3) | (97) | (124) | 3 | 281 |
Income (Loss) per share | (0.00) | (0.00) | (0.00) | (0.00) | (0.00) | (0.00) | 0.00 | 0.00 |
Total assets | 9,056 | 9,266 | 9,490 | 9,680 | 9,572 | 9,801 | 9,957 | 10,130 |
Total liabilities | 2,801 | 2,814 | 2,409 | 2,497 | 2,391 | 1,712 | 1,741 | 1,718 |
As of the date hereof, a major portion of the Company's business was derived from material ancillary involvement in US cannabis-related activities. As at July 31, 2023,
Financial results for the three months ended July 31, 2023 and 2022
The Company recorded a net loss of
Revenues for the three months ended April 30, 2023, were
Expenses for the three months ended July 31, 2023, were
Corporate Update and Recent Developments
The Secure and Fair Enforcement (SAFE) of Banking Act was initially passed by Congress on September 25, 2019 and has since passed 6 additional times. Currently Forty-two (42) senators have co-sponsored the SAFE Banking Act, including 8 Republicans and 3 independents. The title of the measure is now being called the Secure and Fair Enforcement Regulation (SAFER) Banking Act. On September 27, 2023 the Senate Banking Committee held a "mark up" to the SAFE Banking Act, passing the measure on a bipartisan vote of 14 to 9. This is a critical path to a senate vote. Chuck Schumer, Majority Leader of the Senate, says he intends to bring the banking bill to the senate floor with "all do speed" after an affirmative committee vote. The SAFER Banking Act protects depository institutions that provide financial services to cannabis related legitimate businesses and service providers for such purposes, and other purposes.
On August 29, 2023 the HHS sent a letter to the
On August 16, 2023, the Company amended and restated its definitive agreement with Cannavative (the "A&R Definitive Agreement" or the "Transaction"). Under the A&R Definitive Agreement, the Company will acquire all the membership units of Cannavative through the issuance of 29.4 million common shares, and the issuance of 14.7 million purchase warrants, with each warrant being exercisable for one common share at an exercise price of
Upon closing of the Transaction, the Company is expected to have approximately 345.0 million common shares, 107.3 million purchase warrants, up to 75.0 earn out units, 17.3 million options, no debt, and over
The Company continues to make progress to advance its community
Normal Course Issuer Bid ("NCIB")
On October 11, 2022, the Company's normal course issuer bid ("NCIB", the "Bid") expired. The board of directors has approved the renewal of the Bid, commencing after the Company's shares renew trading. Under the Bid, the Company may purchase up to
About Vencanna
On September 24, 2018, the Corporation announced the completion of a recapitalization financing, the appointment of a new management team and board of directors and commencement of trading on the CSE. The transactions have transitioned the Corporation from an oil and gas issuer to a merchant capital firm, rebranded as "Vencanna Ventures". The recapitalized Corporation aims to be a go-to capital provider for early-stage global cannabis initiatives with an emphasis on strong management operating in state compliant jurisdictions with barriers to entry. The Corporation looks to provide investors with a diversified, high-growth, cannabis investment strategy through strategic investments focused through-out the value chain (cultivation, processing, and distribution, and including ancillary businesses).
Forward-Looking Statements
This news release may include "forward-looking statements" which reflect the Corporation's current expectations regarding the future results of operations, performance and achievements of the Corporation, including but not limited to: the signing of a Definitive Agreement in respect of the Transaction, including the terms thereof; timing for completion of the Transaction; required approvals for the completion of the Transaction and the expected receipt thereof; the business plan of the Corporation and Cannavative, including the business plan of the go-forward entity after completion of the Transaction; the anticipated benefits of the Transaction; the market for medical cannabis in
Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to, changes to global cannabis laws, how the developing
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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SOURCE Top Strike Resources Corp.